Dec. 4 (Bloomberg) -- SJM Holdings Ltd. fell the most in
six months, leading a decline in Macau casinos on speculation
China’s government may increase scrutiny of junket operators,
who provide credit to high-stake gamblers.

Police in mainland China and Macau have detained people
from at least three of the biggest junket operators in recent
weeks, the Wall Street Journal reported, citing people familiar
with the situation. By acting as middlemen, junket operators
help drive the VIP business that accounts for about two-thirds
of casino revenues in the world’s largest gambling hub.

Broken Tooth

Xi Jinping, the new head of China’s ruling Communist Party,
in November told his fellow leaders that unless they address
corruption, social unrest may rise and it could lead to the
demise of the party.

Any added scrutiny of the gaming business would also follow
the release of the gangster known as Broken Tooth, or Wan Kuok-koi. Before his 14-year prison term, Wan had links to the local
junket industry. Prior Wan’s Dec. 1 release, one of his former
lieutenants was arrested, the Macau Daily Times reported.

Macau’s judiciary police doesn’t have information on the
arrests reported by the Journal, according to Chiang Chi-meng, a
public relations officer at the judiciary police.